Tag: Bitcoin

African Countries move ahead with New Currencies: The Case of the Sango Coin of CAR

On By Dr. Y.In Great Economy, Great Moments1 Comment
Central African Republic (CAR) flag

As the economy everywhere appears to be in free-fall, with high inflation all over the world, many African countries are taking measures that will help their citizens deal with and hopefully solve some of their internal issues.

President Faustin-Archange Touadera of the Central African Republic (CAR) (Source: ConnecterLeMonde.com)

One such example is that of the Central African Republic (CAR) which adopted Bitcoin as a National Currency last April. This past Sunday, CAR President, Faustin-Archange Touadéra, announced in an online event the creation of the Sango Coin and a zero-taxation “crypto-hub“, the first in Africa. The currency is named Sango after the main African language spoken in the country. This currency will, via the a platform called Crypto Island, allow the country to trade in its vast natural resources (diamonds, uranium, gold, and other minerals). Until now, CAR has been, like 14 other African countries, enslaved by the French colonial tax that is the FCFA which served at one point to ‘siphon’ up to 75% of the countries’ resources directly back to France [Africa is funding Europe!]. It is clear that those African nations need new currencies, and we salute CAR for having the courage to start, even though crypto seems to be unsteady at the moment (like everything else at the moment); it is always scary to be a pioneer, but it is rewarding as well! As a side note, the west tends to overlook, or vilify some of our leaders who try to stand up or do things right for their people. President Touadéra is one of those African leaders who has been demonized for his want to free his country from the French chains, turning to Russia for help in stopping a war in his country which benefited France and its croonies. Rarely do the Western media highlight the fact that President Touadera is also a trained mathematician, and in his free time still teaches students at the University of Bangui in his country.

Excerpts below are from Barron’s. For more, check out articles on Bloomberg, and AfricaNews.

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Map of Central African Republic

Undeterred by the turmoil hitting crypto, the Central African Republic (CAR) — one of the poorest and most troubled countries in the world — has unveiled plans to launch its own digital currency.

President Faustin Archange Touadera, in an “online event” on Sunday, announced CAR would create the Sango Coin and a zero-taxation “crypto-hub“, the first in Africa.

The currency is named after Sango, which with French is one of the two official languages in the landlocked country, rated the world’s second poorest nation under the UN’s Human Development Index.

Through a platform called Crypto Island, the Sango will become “the catalyst for tokenising (CAR’s) vast natural resources,” Touadera declared, providing no timeline or other details.

He hailed Sango and Crypto Island as “a new digital system fed by blockchain,” the internet-based ledger that underpins crypto currencies.

“Sango Coin will give the whole world direct access to our resources,” attracting investors and “getting the engines of the economy going,” he enthused.

On April 27, Touadera’s office abruptly announced that the CAR had adopted Bitcoin as legal tender alongside the CFA franc, a currency the country shares with five other central African economies.

It became the first country in Africa to embrace Bitcoin as a national currency, and the second in the world after El Salvador last September.

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Touadera on Sunday said 57 percent of Africa’s population does not have access to a bank.

“The solution,” he said, was “the smartphone, the alternative to the traditional bank, cash and financial red tape“.

On Twitter, he said, “gold served as the engine of our civilisation for ages! In this new age, digital gold will serve the same for the future.”

Central African Republic (CAR) adopts Bitcoin as a National Currency

On By Dr. Y.In Great Economy3 Comments
Central African Republic (CAR) flag

An African country, the Central African Republic (CAR), becomes the second country in the world, after El Salvador, to adopt Bitcoin as a national currency. As its name says it, CAR is a country in Central Africa. The country of the late Jean-Bedel Bokassa is rich in diamonds, gold, uranium, and other precious minerals; yet it is one of the poorest countries in the world (when you have the FCFA as a currency, can it be any different?).

On Wednesday, a bill to adopt Bitcoin as the country’s legal tender was passed unanimously by the parliament. The office of CAR president, Faustin-Archange Touadera, claimed the move would “improve the conditions of Central African citizens” and distinguish CAR as “of the world’s boldest and most visionary countries.” I couldn’t have said it any better… it is about time to get rid of the FCFA [The 11 Components of the French Colonial Tax in Africa] anyways, why not do it in style? Excerpts below are from the BBC.

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Bitcoin (Source: IBTimes)

The Central African Republic (CAR) has approved Bitcoin as legal tender – just the second country to do so.

CAR is one of the world’s poorest countries, but is rich in diamonds, gold and uranium. It has been wracked by conflict for decades and is a close Russian ally, with mercenaries from the Wagner Group helping fight rebel forces. Lawmakers voted unanimously to adopt Bitcoin as legal tender, said a statement from the CAR presidency. The move puts CAR “on the map of the world’s boldest and most visionary countries“, it said.

… Others have raised fears that cryptocurrencies such as Bitcoin could make it easier for criminals to launder money, and that they are environmentally damaging because they use so much electricity to generate [as if exploiting uranium was eco-friendly! could they possibly be happy when the golden hen is going away?]. The internet is needed to use any cryptocurrency but in 2019, just 4% of people in CAR had access to the web, according to the WorldData website.

Map of Central African Republic

The country currently uses the French-backed CFA franc as its currency, along with most other former French colonies in Africa. Some see the adoption of Bitcoin as an attempt to undermine the CFA, amid a contest for influence over the resource-rich country between Russia and France. “The context, given the systemic corruption and a Russian partner facing international sanctions, does encourage suspicion,” French analyst Thierry Vircoulon told the AFP news agency [of course, France will be suspicious of former slave colonies finding friendship elsewhere].

In the capital, Bangui, the response was mixed. Economist Yann Daworo told BBC Afrique it would make life easier, as transactions can be made with smartphones and it was easy to convert Bitcoin to any other currency. “Businessmen will no longer have to walk around with suitcases of CFA francs that will have to be converted into dollars or any other currency to make purchases abroad,” he said.

Diamonds

He also argued that the CFA was not being used “to benefit Africa” [preach cousin]. There are growing calls in several countries for the currency to be dropped by those who see it as a relic of the colonial era, enabling France to continue to exercise economic control.

However, computer scientist Sydney Tickaya said he thought the adoption of the cryptocurrency was “premature” and “irresponsible“. “Internet access is still underdeveloped in the country while Bitcoin depends entirely on the internet,” he said, adding that the CAR had more pressing issues such as security, education and access to drinking water [sure… but after over 100 years of dealing with France and the FCFA, and not even getting simple roads or education or water, while your diamonds are exploited without you getting a dime, isn’t it time to try something different? when will it be mature enough, or responsible enough to take a leap?] .

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